CDSL Reports 21.5% Increase in Q3 Profit
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Synopsis
Central Depository Services (India) Limited (CDSL) has reported a 21.5% year-on-year increase in net profit, reaching Rs 130 crore in Q3 of FY 2024-25, along with a surge in demat accounts signaling strong retail investor interest.
Key Takeaways
- CDSL's net profit rose by 21.5% YoY.
- Total revenue reached Rs 298 crore.
- Over 14.65 crore demat accounts registered.
- 92 lakh new demat accounts opened in Q3.
- CDSL is a leader in electronic securities transactions.
Mumbai, Jan 26 (NationPress) Central Depository Services (India) Limited (CDSL), recognized as the nation’s leading depository, has reported a 21.5% increase in year-over-year net profit, reaching Rs 130 crore in the October-December quarter of the current financial year (2024-25), up from Rs 107 crore during the same period in 2023-24.
The total revenue for CDSL surged to Rs 298 crore in the third quarter, compared to Rs 236 crore in Q3FY24, although it was slightly lower than the Rs 359 crore recorded in Q2FY25.
CDSL has made history by becoming the first depository to register over 14.65 crore demat accounts as of December 31, 2024, with approximately 92 lakh new demat accounts opened during the October-December quarter.
As India’s top depository, CDSL is pivotal in holding and transacting securities electronically, while also facilitating trade settlements on stock exchanges.
In the quarter ending March FY24, CDSL achieved a milestone by registering 1.09 crore demat accounts, pushing the overall count past 11.56 crore. The number of demat accounts in India has consistently increased, even amid market fluctuations, with over 3.26 crore new demat accounts opened in the fiscal year 2023-24, marking the highest quarterly registrations.
The rise in demat accounts reflects sustained interest from retail investors in the stock market.
A demat account functions as a digital repository for holding securities such as stocks, bonds, mutual funds, and ETFs, akin to a bank account but dedicated to financial securities.
The benefits of a demat account include enhanced security, reduced risks of theft or forgery, and the convenience of online access via mobile apps or NetBanking.
Furthermore, demat accounts enable the electronic transfer of shares, streamlining trading processes. They also allow investors to consolidate all their investments in one accessible location, simplifying monitoring.
Established in 1999, CDSL plays a vital role as the Indian Market Infrastructure Institution (MII), facilitating the electronic holding and transaction of securities and ensuring trade settlements. The company serves a diverse array of capital market participants, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.
